Payment of Dividend and Issue of Equity

British Smaller Companies VCT2 plc (the "Company")

Payment of Dividend and Allotment of Shares

The Company announces that on 23 June 2025 it paid an interim dividend for the year ending 31 December 2025 of 1.50 pence per ordinary share to shareholders on the register of members of the Company as at the record date of 23 May 2025 (the "Interim Dividend").

The Company further announces that on 23 June 2025 it issued and allotted 1,384,755 ordinary shares of 0.01 pence each pursuant to its dividend re-investment scheme ("DRIS") at a price of 54.70 pence per ordinary share to shareholders of the Company who elected to receive ordinary shares instead of the Interim Dividend. The subscription price of 54.70 pence per ordinary share was determined in accordance with the terms and conditions of the DRIS on the basis of the net asset value of 56.20 pence per ordinary share as at 31 March 2025 (adjusted for the Interim Dividend of 1.50 pence per ordinary share paid today). As a result, 15.3 per cent of the Interim Dividend paid by the Company was re-invested in ordinary shares in the Company via the DRIS.

In this allotment the employees and members of the Manager, YFM Private Equity Limited, have been allotted 7,466 ordinary shares of 0.01 pence each in the Company, bringing their aggregate total holding to 966,632 ordinary shares.

Application is now being made for the ordinary shares which were issued and allotted as set out above to be admitted to the Official List of the Financial Conduct Authority and to trading on the London Stock Exchange's Main Market for listed securities, and dealings are expected to commence on or around 7 July 2025.

Following such issue and allotment the Company's issued share capital consists of 332,150,111 ordinary shares of 0.01 pence each with voting rights ("Voting Capital") and 30,642,859 ordinary shares of 0.01 pence each held in treasury.

The above statement of Voting Capital may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA's Disclosure and Transparency Rules.

For further information please contact:

Marcus Karia YFM Equity Partners Tel: 0113 244 1000

Alex Collins Panmure Liberum Tel: 0207 886 2767